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Skipton BS’ 2021 gross mortgage lending rises 20 per cent to £5.4bn

  • 18/03/2022
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Skipton BS’ 2021 gross mortgage lending rises 20 per cent to £5.4bn
Skipton Building Society has reported a 20 per cent annual rise to its gross mortgage lending, which totalled £5.4bn in 2021, up from £4.5bn the year before.

In its financial results for the year ending 31 December 2021, the mutual’s mortgage balance went up by 6.8 per cent in 2021, a slight decrease on the 8.6 per cent growth in the prior year.

It provided 30,282 mortgages in 2021, and of that 7,893 were to first-time buyers. This is up from 24,557 mortgages it provided in 2020, as well as the 5,424 which went to first-time buyers.

It also completed 6,899 buy-to-let mortgages, an increase from 5,955 in the prior year.

Skipton’s mortgage portfolio came to £23bn and lending accounted for two per cent of the growth in the UK residential mortgage market, which compared to its 1.4 per cent share of UK residential mortgage balances.

Its profit before tax for its mortgage and savings division nearly tripled from £67.3m in 2020 to £165.3m in 2021. This was partially attributed to a credit of £13m from loan impairment provisions.

This compared to a profit before tax for the wider group of £271.7m, which is more than double the £118.8m figure from last year.

Residential mortgages in arrears of three months of more came to 0.22 per cent, which is below the industry average of 0.83 per cent and compares to 0.29 per cent last year.

David Cutter (pictured), Skipton Group’s chief executive, said the results were a “testament to the strength” of its business model, colleague engagement, strong culture and ability to move quickly to seize opportunities.

He also noted the growing economic confidence and strong housing market had played in its favour.

He said: “2021 was a remarkable year for Skipton as all of our people continued to support our customers at the moments that matter, regardless of what the ongoing pandemic threw at everyone.

“And while the UK adjusts to a post-pandemic future, with new social norms and consumer behaviours, our purpose remains the same – helping people have a home, save for their life ahead, and supporting their long-term financial wellbeing.”


‘Strong competition’ to remain in mortgage market

Skipton BS said it started 2022 from a “position of great strength” and plans to continue investing in its business and people to respond to changing market conditions.

The lender said it expected “strong competition” to remain in the mortgage market in the coming year as lenders still hold high levels of liquidity. It added that this would put more pressure on interest margins.

However, the mutual said it remaining alert to “increasing geopolitical uncertainty” from the conflict in Ukraine but it said its financial strength, diverse business portfolio and focus on customer and colleague experience would hold it in good stead.

It added that the housing market would likely “moderate” in 2022 and the mutual said it planned to do more to support first-time buyers.


Connells and Skipton International report strong performance

Skipton BS said that Connells, which is owned by the group, delivered dividends of £60m to the mutual and it has repaid £124.8m of the £253m which was loaned to Connells as part of its acquisition of Countrywide last year.

Connells’ profit before tax increased by £59.5m to £111.3m, and property exchanges were 175 per cent higher than the year before.

Buyer registration also increased by over a third, 38 per cent, on a like-for-like basis, although stock shortage remains an issue.

Skipton International, which is a Guernsey-based bank that specialises in expat mortgages, saw its mortgage balances come to £1.7bn in 2021, which is up from £1.6bn in the previous year. It reported profits before tax of £25.5m, up from £19.9m in 2020.

The report added that the quality of Skipton International’s mortgage book “remains good” with only one case in arrears by three months or more, which is the same as the previous year.

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